poulsbo, wa...time, safeway, cvs pharmacy, and dairy queen. poulsbo is a growing 21st century city...

Taco Bell | Offering Memorandum 1

OFFERING MEMORANDUM

HANK WOLFERFirst Vice [email protected]

POULSBO, WAABSOLUTE NNN LEASE


EXECUTIVE SUMMARY

INVESTMENT OVERVIEW Marcus & Millichap has been selected to exclusively market for sale the 7th Avenue NE Taco Bell restaurant in Poulsbo, Washington. The 2,150 Square-foot building sits on a 0.37 acre lot in a main commercial corridor of Poulsbo. Located on the main thoroughfare of Highway 305, the property is an outparcel to a major shopping center and just blocks from the Port of Poulsbo. The site is leased to a regional franchisee (Orchard Foods - 12 locations in Washington) who has been in the Taco Bell/Yum! system since 1989. The lease is an Absolute NNN lease with zero landlord responsibilities whatsoever. The tenant has occupied the site since 2000 and there is a 7.5% rent bump set to occur in 2022. The subject property is located along State Highway 305, a heavily traveled thoroughfare that goes through Bainbridge Island, Poulsbo, and Kingston. The property is situated between Burger King and 76 Gas Station

and is an outparcel to a shopping center that includes Rite Aid, Starbucks, Dollar Tree, Sprint, The UPS Store, and Domino’s. North Kitsap High School and the Port of Poulsbo are just south of the property. Major retailers close-by retailers include Central Market, Taco Time, Safeway, CVS Pharmacy, and Dairy Queen. Poulsbo is a growing 21st century city with a Scandinavian heritage that has earned Poulsbo the nickname “Little Norway”. Poulsbo, Washington, with a population of 10,210, is located in the northern part of Kitsap County and is 4.5 square miles in area. The town is situated between Liberty Bay and the Olympic Mountains. The population within three miles of the Taco Bell has increased by 37% since the year 2000.

For more info on the franchisee visit: https://www.orchard-foods.com/


THE OFFERING Price $1,353,000

Net Operating Income $77,820

CAP Rate 5.75%

Price / SF $629.30

Rent / SF $36.20

Lease Type Absolute Net

Gross Leasable Area 2,150 SF

Year Built / Renovated 1988/2012

Lot Size 0.37 AC


NNNAbsolute NNN Leased Taco Bell That Has Successfully Operated Since 2000

7.5% Rent Bump to Occur in 2022 (New Annual Rent Will be $83,640)

Rare Seattle MSA Fast- Food Opportunity | Low Price Point w/ List price of $1,353,000

Next Closest Taco Bell is Located 10 Miles Away in Silverdale

Regional Franchisee In Operation Since 1989 (12 Restaurants with Plans to Develop Additional)

$Low Rent/SF and Healthy Rent-to-Sales Ratio | All Rents Paid During COVID

INVESTMENT HIGHLIGHTS


19,5

00

VP

D

305305

305305


DAIRY QUEEN

BURGER KING

POULSBO FIRE DEPARTMENT

RETAIL TRADE MAP

305305


FINANCIAL INFORMATION

LEASE YEAR ANNUAL RENT MONTHLY RENT RENT/SF CAP RATE

Current $77,280 $6,485 $36.20 5.75%

2022 $83,640 $6,970 $38.90 6.18%

1st Option See Lease For More Info

2nd Option See Lease For More Info

RENT SCHEDULE

LEASE SUMMARY

Lease Type Absolute NNN

Guarantor Franchisee Guarantee

Lease Commencement 12/15/2000

Lease Expiration 5/31/2024

Lease Term Remaining Approximately 3.5 years

Lease Options Four 5-Year

Landlord Responsibilities None

Tenant Responsibility All

Rent Bumps 7.5% Every 5 Years, Next in 2022 ($83,640)

LEASE SUMMARY

INCOME

Net Operating Income $77,820

ANNUALIZED OPERATING INFORMATION


Location overview

Kitsap County is situated across the Puget Sound from the city of Seattle and the city of Tacoma is 30 miles to the south. It is surrounded by water on three sides, and the roughly 250 miles of coastline provide scenic views and a vast array of

water activities that draw tourists. The water also serves as the backbone for the local maritime and military economic sectors. Quick ferry access to Seattle helps draw new residents, including many retirees.

KITSAP COUNTY, WASHINGTON


POPULATION 1 MILE 3 MILES 5 MILES

2024 Population Projection

7,106 20,792 47,082

2019 Population Estimate

6,806 19,611 44,998

2010 Census 6,213 17,684 41,214

2000 Census 5,213 14,286 39,145

2019 Daytime Population

10,187 20,565 43,503

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2024 Household Projection

3,341 8,501 17,779

2019 Household Estimate

3,149 7,948 16,791

Average Mean HH Size 2.12 2.42 2.51

2010 Household Census

2,847 7,108 15,225

2000 Household Census

2,259 5,602 12,759

2022 Occupied Units Projection

3,341 8,501 17,779

2019 Occupied Units Estimate

3,292 8,314 17,861

HH BY INCOME 1 MILE 3 MILES 5 MILES

Average HH Income $77,017 $94,364 $96,390

Median HH Income $64,568 $77,002 $77,591

Per Capita Income $36,245 $38,500 $36,542

Demographics


CONFIDENTIALITY AND DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Offering Memorandum has been prepared to provide summary, unverified informationto prospective purchasers, and to establish only a preliminary level of interestin the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not madeany investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose ofproviding tenant lessee information about this listing to prospective customers.

NET-LEASED DISCLAIMER

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property.The value of a net leased property to you depends on factors that should beevaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independentinvestigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review alllegal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an impor-tant consideration, it is not a guarantee of future success.

Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s pro-jectedsales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guaran-tors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and thevalue of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Offering Memorandum you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

ACTIVITY ID: ZAB0110313


HANK WOLFERFirst Vice [email protected]

OFFERING MEMORANDUM

POULSBO, WA

poulsbo, wa...time, safeway, cvs pharmacy, and dairy queen. poulsbo is a growing 21st century city...

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